During the Asian session, New Zealand will release trade data and the Reserve Bank of Australia will release minutes from its latest meeting. Later in the day, inflation data from Canada is due and the Federal Reserve will release the FOMC minutes.
Here’s what you need to know on Tuesday, November 21:
The US dollar index (DXY) fell further, falling to 103.45, its lowest level since late August. Risk appetite and lower Treasury yields weighed on the dollar. In the short term, the US dollar remains vulnerable even as the US economy grows, while the Eurozone and other economies are heading into recession.
Regarding economic dataTuesday’s US data includes existing home sales and the Chicago Fed National Activity Index. The Federal Reserve System (Fed) will release the minutes of its latest meeting.
EUR/USD it extended its gains above 1.0900 to the 1.0950 area. Bias is higher, but technical indicators are showing overbought conditions that could indicate consolidation ahead of the next leg higher.
GBP/USD it rose above 1.2500 and broke through the 100-day simple moving average (SMA). The pair maintains a bullish bias due to a weaker US dollar. On Tuesday, Bank of England (BoE) Governor Bailey and members of the Monetary Policy Committee will meet with lawmakers to discuss the monetary policy report.
USD/JPY it also continued its downtrend for the third day in a row, accumulating a decline of more than 300 pips. The pair fell towards 148.00 and remains under pressure.
AUD/USD it bounced and broke above 0.6550 to new monthly highs. Another significant resistance is at 0.6600. Reserve Bank of Australia (RBA) Governor Michele Bullock will deliver a speech on Tuesday. The RBA will also publish the minutes of its most recent meetings.
USD/CAD posted modest gains, with the Canadian dollar among the worst performers, despite a rise in oil. The pair faces resistance at 1.3770 and is supported by the 55-day SMA at 1.3660. Canadian data due on Tuesday will show whether inflation will continue to move closer to the 2% target or whether new pressures will emerge. The Federal Government will release the Autumn Economic Statement.
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